CBS, Howard Stern reach settlement on lawsuit

May 26, 2006

NEW YORK (Reuters) – CBS Corp.’s radio division has reached
a settlement with radio shock jock Howard Stern over a breach
of contract lawsuit stemming from Stern’s defection to a rival
satellite radio broadcaster, the two sides said on Friday.

The settlement ends a bitter dispute between CBS and its
former morning talk radio star Stern, who signed a five-year
deal estimated at $500 million to appear on Sirius beginning in
2006.

CBS Radio had sued Stern, his company One Twelve Inc., his
agent Don Buchwald and Sirius Satellite Radio in February,
accusing the raunchy radio star of improperly using his final
14 months with the company to promote Sirius on air.

The suit sought unspecified compensatory and punitive
damages for breach of contract, fraud and misuse of CBS
broadcast time, among other accusations. Stern had called the
suit a vendetta against him, saying he had done nothing wrong.

As part of the settlement, CBS Radio will receive payments
in return for allowing the use of its recordings of The Howard
Stern Show, according to a joint statement by CBS and Buchwald.

The payments include $2 million from Sirius. Information on
potential payments by Stern and his representatives was not
disclosed.